Steven A. Michaels, President and CEO of PROG Holdings, Inc. (NYSE:PRG), recently sold shares of the company's common stock totaling approximately $3.52 million. The transactions occurred over several days in early November, with shares sold at prices ranging from $47.19 to $48.82.
On November 7, Michaels sold 40,694 shares at an average price of $47.92 and an additional 5,800 shares at $48.82. The following day, November 8, he sold another 27,324 shares at an average price of $47.19. Following these transactions, Michaels retains direct ownership of 403,133 shares.
In addition to these sales, Michaels exercised stock options on November 8, acquiring 27,324 shares at a price of $25.87 per share, adding a total value of $706,871 to his holdings. These options were originally granted in 2015 and became exercisable in increments over the years.
The sales and option exercises were disclosed in a recent SEC filing, indicating a strategic move by the CEO in managing his holdings in the company.
In other recent news, PROG Holdings has demonstrated robust growth in its third-quarter earnings for the fiscal year 2024. The company reported a consolidated revenue of $606.1 million, marking a 4% increase year-over-year. The Gross Merchandise Volume (GMV) of the Progressive Leasing segment, a subsidiary of PROG Holdings, grew by 11.6%. PROG Holdings also declared a quarterly dividend of $0.12 per share and repurchased 810,000 shares. The company revised its full-year revenue outlook to between $2.44 and $2.46 billion and adjusted EBITDA to $270 to $275 million.
Loop Capital maintained a positive stance on PROG Holdings, reiterating a Buy rating and a price target of $55.00. This reflects the company's increasing momentum, marked by sequential improvements in GMV, revenue, and growth in gross leased assets. The firm also pointed out the management's decision to raise its full-year 2024 guidance for the third time, indicating growing confidence in PROG Holdings' operational progress and future prospects.
The recent acquisition of a new account with American Signature was highlighted as a significant development, alongside the anticipated decline in U.S. interest rates, which could further enhance the company's performance. These are among the recent developments that investors should note.
InvestingPro Insights
PROG Holdings, Inc. (NYSE:PRG) has been experiencing significant market momentum, as evidenced by its recent financial performance and stock market activity. According to InvestingPro data, the company's stock has shown a remarkable 72.8% total return over the past year, with a 38.54% return in just the last six months. This upward trend aligns with CEO Steven A. Michaels' recent stock transactions, potentially indicating a favorable outlook for the company.
InvestingPro Tips highlight that management has been aggressively buying back shares, which often signals confidence in the company's future prospects. Additionally, the company's liquid assets exceed short-term obligations, suggesting a strong financial position that could support continued growth and shareholder value creation.
The company's P/E ratio (adjusted) of 6.51 for the last twelve months as of Q3 2024 indicates that the stock may be undervalued relative to its earnings, especially considering the strong recent performance. This valuation metric, combined with the InvestingPro Fair Value estimate of $63.11, suggests there might be further upside potential for the stock.
It's worth noting that InvestingPro offers 10 additional tips for PROG Holdings, providing investors with a more comprehensive analysis of the company's financial health and market position. For those seeking a deeper understanding of PRG's investment potential, exploring these additional insights on InvestingPro could be valuable.
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